STUDY OF CONSUMER BEHAVIOUR :

Price is one of the important element of marketing and also the

determinant in a buyers choice. In this changing economic and
advanced technological environment the buyers can get a quick
comparison of the price of the product which they choose to with the
competitor products so for a company setting up a price has become
more challenging. There are six steps which a company follows while
pricing a product:

1) Selecting Pricing objective: The main objectives in this step are

survival, maximum current profit, maximize market share, maximum
market skimming and product quality leadership. There are other
objectives which non profit and public organizations follow.

2) Determining Demand: In this step the company studies how change

in price affects buying behaviour. The company conducts price
experiments online, surveys and analyse them. The demand curve for
Kurkure Masala Much is inelastic

3) Estimating Costs: The company calculates the fixed costs and variable
costs. The company then determine an average cost assuming the
production of some quantity.

4) Analyzing Competitors’ Costs, Prices and Offers: The company

considers the competitors’ price, costs and offers and set the priceing
based on it. For example if a competitor provides more additional
features then the company have to reduce the price of their product.
Kurkure Masala Much is second when compared to the competitors.
The first being Lays which is from the same company PepsiCo.

5) Selecting a Pricing Method: Before selecting a price the company

have three majr considerations: Cost, Competitor prices and
Customers’ assessment. Companies select a method or combination of
two or more of these considerations. Markup pricing, Target-return
pricing, Perceived value pricing, Value pricing, going rate pricing and
auction type pricing are the 6 price setting methods which a company
follows. The method followed by Kurkure Masala Much is the perceived
value pricing.

6) Selecting the final price: After following all the previous steps the
company also considers other factors including the impact of other
marketing activities, company pricing policies, gain and risk sharing
pricing, and the impact of price on other parties.
Pricing Mix
According to Kotler in his Marketing Management 14th edition book,
the firms searches for set of prices which helps the company to
maximise profit. While setting up the process the company should keep
in mind about the demand of the product, cost interrelationships and
also the different degrees of competition. There are six different
situations calling for product mix pricing:

1. Product Line Pricing

Different price steps for different product lines rather than sticking to
just one single product.

2. Optional Feature Pricing

Offering additional features or products or services in addition to their

main product.

3. Captive Product Pricing

Setting up captive products that work with the main product.

4. Two Part Pricing

Companies offer a fixed fee for a product and in addition to that a

different usage fee.

5. By Product Pricing

Certain products results in by products that have different prices based

on their value. The income earned from the by products helps the
company to make adjustments on prices on the actual product.
Product Mix
According to Kotler in his book Marketing Management (14th edition),
he stated that Product Mix is the set of all products and items a
particular seller offers for sale. It includes all product lines and
categories. A company’s product mix has certain width, length and
depth.Considering the product Kurkure. Kurkure is from a company
called PepsiCo.

Product Width:
It refers to the number of product lines a company has to offer. PepsiCo
has products which come under Food and also in Beverages. Kurkure
comes under food along side with Lays, Quaker oats, Uncle Chips,
Cheetos. Beverages include Pepsi, 7up, Aquafina, Mountain Dew,
Mirinda, Tropicana.

Product Depth:
It refers to the total number of items in a product mix. Other than the
products mentioned above , PepsiCos Food line include 7 items in total
and Beverages line include 10 brands in total.
Product Length:
It refers to the different variations of the product. Kurkure as different
flavours which include Masala Munch, Naughty Tomato, Chilli Chatka,
Green Chutney Rajastani Style, Hyderabadi Hungama. Other flavours
are Deewana Tamatar, Dildaar Masala, Flirty Lim which comes under
Kurkure Desi Beats. Masala Twists, Nimbu Masala Style which comes
under Kurkure Solid Masti. Mad Masala, Yummy Cheese under Kurkure
Puffcorn and finally Mad Masala, Funky Tomato under Kurkure Monster
Paws.

Marketing Mix Elements

Marketing Mix plays an important role in determining the brands offer.

Marketing Mix is mainly associated with the 4P’s which are Price,
Promotion, Product and Place.

1. Price

The pricing for the kurkure packets which are widely available in the
stores are Rs 10/- and Rs20/-. In order to push the sales in urban areas
the company introduced small packets worth Rs3/- and Rs 5/- to
encourage the customers. In urban areas they introduced a bigger pack
which becomes convenient for the driver.

2. Promotion

The company took many measures to promote the brand with

catchphrases and film stars. In 2003, The company signed Juhi Chawla
as the brand ambassador. In 2004 they came up with a catchphrase “Iss
Kahani mein kurkure hoona chaahiye”. To engage with the costumers,
the company came up with a program called “Kurkure Mast Family
Jackpot” in 2007. In 2009 as a counter to “Bingo: Mad Angles”, Kurkure
came up with a new sub brand called “Kurkure Desi Beats”. In 2010 the
company came up with a whole new campaign called “tedhi family”
which says that even though there are different members in the family
with different tastes for food, kurkure is accepted in the family as it has
wide range of flavours to satisfy each and every family member.

3. Product

The wide range of products that come under kurkure are categorised in
different categories according to their flavours or shape of how the
product looks like:

Flavours:

Masala Munch, Naughty Tomato, Chilli Chatka, Green Chutney

Rajastani Style, Hyderabadi Hungama.

Desi Beats:

Deewana Tamatar, Dildaar Masala, Flirty Lim

Solid Masti:

Masala Twists, Nimbu Masala Style

Puffcorn:

Mad Masala, Yummy Cheese,Monster Paws:

Mad Masala, Funky Tomato

4. Place

Kurkure is widely distributed in India, Pakistan, Kenya and Canada.